Chicago taxi fare hike could be in the cards

A Chicago cab fare hike could be in store after an influential aldermen on Monday floated the idea and city officials said they are reviewing the taxi fare structure.

Ald. Edward Burke said a $1-a-ride fare hike could pump tens of millions of dollars into city coffers and head off some of the spending cuts proposed by Mayor Rahm Emanuel.

The 14th Ward alderman brought up the idea last November, but it went nowhere after running into opposition from struggling cab drivers whose calls for higher fares had gone unheeded.Now, with Emanuel proposing a budget that would reduce library hours, consolidate mental health clinics and raise some vehicle sticker fees, the idea might get a better reception as an alternative to those choices, Burke said.

“I do know a $1 surcharge on the flag pull could generate about $70 million,” Burke said. “So that’s a considerable amount of money that hopefully would not negatively impact the industry.”

Burke’s comments came as the City Council Budget Committee heard testimony from the city commissioner whose department oversees taxicab regulation.

Rosemary Krimbel, who heads up the Department of Business Affairs and Consumer Protection, said a group of city officials and unpaid consultants is looking at the city’s entire set of cab regulations, including fares.

The aim is to make cabs safer, get a “greener” cab fleet and improve the business for owners and drivers, Krimbel said. The city also wants to simplify the fare structure and make cabs more accessible, she added.

“We are looking at the meter rates, we are looking at the lease rates, and we are looking at the economics of the entire industry,” Krimbel told Burke. “Currently, the economics of the taxicab regulation are out of whack. The economics are not there to support a clean and efficient taxicab fleet.”

“Surcharge is one of the items we are looking at out there,” Krimbel said. “We are looking at everything.”

Before a 50-cent-per-ride gas price surcharge, Chicago cab rates are the next-to-lowest among 12 large U.S. cities, she said. With those charges, it’s fourth lowest.

One area of concern is that meters now rack up charges quicker when a cab is moving than when it’s standing in traffic. “Right now the current meters, it makes more sense for a cab driver to go fast than to go slow,” she said. “We need to change that incentive.”

But Krimbel later said the administration’s evaluation would not be done until late this year at the earliest. That’s well after the Nov. 16 deadline for approving the budget, although aldermen could force the issue by trying to amend the mayor’s budget proposal.

Chicago's current base taxi fare is $2.25, plus $1 for the first additional passenger and $.50 for each additional passenger, with a $1 fuel surcharge.